It is not an ex gratia payment. It is a payment for the past services rendered. (Reference may be made to Deokinandan Prasad vs_ State ofBihar (1971) 2 SCC 330 and Subrata Sen vs. Union of India (2001) 8 SCC 71.)In the said case, this Court held that the right
to receive pension was wrongly withheld by an executive order.

A full bench of Supreme Court has declared in their historical judgment that PENSION is to live from want in one’s fall of life, with decency, independence and self respect and at a standard equivalent at the pre-retirement level.
Pension is not only compensation for loyal service rendered in the past but it has a broader significance in that it is a measure of socio-economic justice which inherits economic security in the fall of life when physical and mental prowess is ebbing corresponding to aging process and, therefore, one is required to fall back on savings. One such saving in kind is when you give your best in the heyday of life to your employer, in days of invalidity, economics security by way of periodical payment is assured. The term ‘pension’ has been judicially defined as stated allowance or stipend made in consideration of past service or a surrender of rights or emoluments to one retired from service.
Pension is not a bounty payable on the sweet will and pleasure of the Government. Right to superannuation including its amount is a valuable right vesting in a government servant. (D.S. Nakara Vs UOI 1983 1 SLJ)

The Fourth Central Pay Commission declared that Pension stands on a high pedestal

The Fifth Central Pay Commission stated that Pension is statutory, inalienable, legally enforceable right to retired employees and it has been earned by the sweat of their brow.